Correlation Between Abcellera Biologics and Baldwin Insurance
Can any of the company-specific risk be diversified away by investing in both Abcellera Biologics and Baldwin Insurance at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Abcellera Biologics and Baldwin Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abcellera Biologics and The Baldwin Insurance, you can compare the effects of market volatilities on Abcellera Biologics and Baldwin Insurance and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Abcellera Biologics with a short position of Baldwin Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abcellera Biologics and Baldwin Insurance.
Diversification Opportunities for Abcellera Biologics and Baldwin Insurance
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Abcellera and Baldwin is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Abcellera Biologics and The Baldwin Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baldwin Insurance and Abcellera Biologics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Abcellera Biologics are associated (or correlated) with Baldwin Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baldwin Insurance has no effect on the direction of Abcellera Biologics i.e., Abcellera Biologics and Baldwin Insurance go up and down completely randomly.
Pair Corralation between Abcellera Biologics and Baldwin Insurance
Given the investment horizon of 90 days Abcellera Biologics is expected to under-perform the Baldwin Insurance. In addition to that, Abcellera Biologics is 1.38 times more volatile than The Baldwin Insurance. It trades about -0.05 of its total potential returns per unit of risk. The Baldwin Insurance is currently generating about 0.04 per unit of volatility. If you would invest 2,980 in The Baldwin Insurance on November 1, 2024 and sell it today you would earn a total of 1,143 from holding The Baldwin Insurance or generate 38.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abcellera Biologics vs. The Baldwin Insurance
Performance |
| Timeline |
| Abcellera Biologics |
| Baldwin Insurance |
Abcellera Biologics and Baldwin Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abcellera Biologics and Baldwin Insurance
The main advantage of trading using opposite Abcellera Biologics and Baldwin Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abcellera Biologics position performs unexpectedly, Baldwin Insurance can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Baldwin Insurance will offset losses from the drop in Baldwin Insurance's long position.| Abcellera Biologics vs. Hepion Pharmaceuticals | Abcellera Biologics vs. Krystal Biotech | Abcellera Biologics vs. CureVac NV | Abcellera Biologics vs. Vir Biotechnology |
| Baldwin Insurance vs. Abcellera Biologics | Baldwin Insurance vs. Regeneron Pharmaceuticals | Baldwin Insurance vs. Lipocine | Baldwin Insurance vs. Sonos Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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